I think that they were addressed over the past minutes. But just on capital allocation in base metals, right? We still don’t have a plan on the future investment program, where exactly you’re allocating capital? I mean from previous commentary, I get a sense that you’re probably going to be more inclined investing in Brazil, probably more copper exposure in Brazil. But how is that progressing? I mean is there any update? Or should we look into any announcement at Vale Day on where investments are moving at base metal specifically? Those are the questions.
Eduardo de Salles Bartolomeo: Okay. Well, I’ll ask Spinelli to answer the market and Gustavo on the base metals, but upside risk.
Marcello Spinelli: Well, Leo thank you for your question. So first of all, you point out many information that supports our strong — our view about what Eduardo just said. We have a more optimistic view about China in the market. And we can say that’s the China resilience. It’s really clear that the government now is supporting and given all the signs that they want to keep their goal of GDP, GDP per capita that is already established. So many of us are always tracking the properties as decrease — that is actually decreasing and we have some numbers of minus 7% of decrease and we have a more optimistic or a less bearish view about this when you consider some other information rather than NBS like who that we have a slighter decrease of minus 2%.
So this is the common sense that we can disagree. But I want to drag your attention for the bright side of what’s going on in China. So first thing, there is a reinventing of the manufacturing in China. So we can see what the government said, quality development. They are leading the green industry, turbines, all the equipments to support decarbonization in the world are being produced in China to support their domestic demand and also the export. They are in production of double digit for small appliance. EVs, they are flooding the world with their cars, and we see this in Brazil. So there is a new platform of manufacturing that is going on in China. And they need more high-quality steel to support that. Infrastructure, they announced [indiscernible] RMB 1 trillion, that we saw, that will support next year the increase of more infrastructure.
And they are already exporting as you said 8 million tonnes that they will probably balance that export next year when the infrastructure will play a more important role. This is the main figure. Another point that we should pay attention. We always track the CSP, the crude steel production, in China. But pay attention in PIP, the pig iron production in China. There is a decline in the production of flat and rebar. So when you need flat, you need a better quality production and we need to use the best furnace route, so you need more iron ore. CSP is increasing 1.7%, PIP 2.8%. That is supporting also the iron ore production in China. And you have a lack of scrap to support a route. So there’s another important information to show that we have a strong demand, not only for short term but also for mid- and long term.
Again, in the supply side, let’s talk about the balance of supply side. We don’t see a strong any strong support from any region to increase the supply of iron ore in the seaborne market, actually is a decrease. And India now is decreasing probably for next year. They are blooming there. And that’s important information. I’m not just taken information of the market. We are selling to India. We just signed a 5 million tonne contract to India to support them in this very high-speed growth. So we see a tight market, a very balanced market in the supply side and demand side that can support this upside risk that Eduardo just mentioned.
